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Jewellers upbeat on festive demand

Gold price is still 15% lower from life-time high of `56,191/10gm

Jewellers upbeat on festive demand

Mumbai: This year Jewelers are anticipating a significant rise in sales as gold price is not increased much throughout the year, while other asses class like lobal Equity market, Metal Market are all time high, but Gold is down around 15 per cent which Rs 8,751 from its life time highof Rs 56,191 on MCX.

Due to massive stimulus in world market and nearly zero interest rate in US, Dollar getting weak against the world currency which is supportive for the gold prices. Only concern is US bond yields. If it continues to increase, then they may capped gold price on upside, feel theexperts.

Talking to Bizz Buzz, KshitijPurohit, Lead Commodities & Currency, CapitalVia Global Research, said:"India, the world's largest gold importer, imports 800-900 tons of gold each year. The primary reason for gold importation into the country is to meet the demand of the jewelry industry due to surge in demand in this festive season as prices are very attractive this year. This year, according to the Department for Promotion of Industry and Internal Trade (DPIIT), cumulative FDI inflows into diamond and gold ornaments in India totaled $1,190.83 million between April 2000 and March 2021. DPIIT, which suggesting outlook of gold continues to remain bullish in one of the top gold-consuming nations like India." Apart from buying physical Gold, one may look towards other instruments like Gold ETF and Sovereign Gold bonds. These both instruments come with benefits like higher yield than physical gold, tax benefits, guaranteed purity, etc. A Gold ETF opportunity to take the exposure in the precious metals especially Gold, It Invest in 99.5 per cent Purity Gold, he added.

Now-a-days, Digital gold is a way to invest in and buy gold without having to physically hold it. Buyers may effortlessly acquire gold in the amounts they require and build up their gold holdings without having to visit a store. The gold will be kept in a vault where you can sell it or convert it into actual gold whenever you choose.

People are interested to invest in Gold, but most concern is about purity of the gold on the other hand gold can be bought digitally in the e-wallets or in the form of bonds or via brokers who are offering buy digital gold.

The outlook over the fundamental analysis of gold market remains strong supported with growing world economy and rapidly expanding money supply in the world eco system. We can expect all time globally in the gold by December.

Gold is trading near $1,775 per ounce on Comex and Rs47,400 per 10 gm on MCX. Technically Gold made double bottom at $1,720 level on the weekly charts and on MCX price are trading above 200 days' SMA which is at 47,223, I think for Investor should start accumulating gold from this levels, There is a chance that market can take small pause near 50,000 level, however, the coming time is good for the yellow metals.

Buying a gold coin or jewelry on the occasion of forthcoming festival of lights Diwali or Dussehra, which has just gone by, is considered to be a wise decision not only due to its financial value, but it has also a social value attached. Gold has been considered as the safest mode of investment in India. In our country, it in linked to auspicious occasions likeDiwali, Dussehra, AkshayaTritiya.

Kumud Das
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